Investment firm Bitcoin Capital is hoping their traded product will fuel the adoption of crowdfunding. The exchange-traded product Bitcoin Capital (BTCA) is traded on the Swiss stock exchange. It can assign funds as an estimate for fifteen different cryptocurrencies and fiat. Daniel Demers, one of the directors of FICAS, the company that operates the product, told Cointelegraph that these types of products are essential for the mass adoption of Bitcoin:
It’s easy to act. We have already seen here in Switzerland that some of the most popular online banks like Swissquote, a bank that is entirely on your smartphone. For them the product was easy to insert. So if you have queued or brokered one of these online banks, it is very easy to find a product.
The fact that a manager can discreetly allocate money to both cryptocurrencies and fiat currencies gives them an edge over similar products, Demers said. He explained that the team is relying on four frameworks to enhance their portfolio: technical analysis, fundamentals, sentiment analysis, and what he calls the “agency model”. The latter deals with monitoring the behavior of other key market participants. Personalization is publicly available and updated monthly. Currently around 83% is invested in Bitcoin and 12% in Bitcoin Cash (BCH), with just over 1% allocated to Ethereum (ETH).
The nominal value of the BTCA is 100 CHF and is currently trading at a premium of 10%. In comparison, Grayscale’s Bitcoin (BTC) Trust routinely demands a 20% premium over the counter. This premium can be explained by the fact that it is more convenient for investors as they do not have to deal with portfolios or custodians. You are also able to direct such coding due to the limited competition in space.